Bayer Group's stock price plummeted, with a loss of US$2.25 billion due to litigation, and Dabeinong will lose 800 million yuan to 2.2 billion yuan in 2023, with seed business revenue increasing by nearly 50%;
Golden Nonghua, a subsidiary of Dabeinong, plans to purchase 46.5% of the equity of Jiamusi Longjing Seed Industry for 39.64 million yuan, and Denghai Seed Industry plans to set up a new subsidiary, Chabchar Denghai Seed Industry, whose business scope includes the production of genetically modified crop seeds;
The volume and price of Qiule seed products have risen, with a profit of 79.16 million yuan in 2023, and Shennong Technology expects a net loss of 32 million yuan to 45 million yuan in 2023;
Suken Agricultural Development's operating income in 2023 will be about 12.2 billion yuan, a year-on-year decrease of 4.13%;
What are the recent actions of large companies? Let's take a look!
01
Bayer: Group shares plummeted, with a loss of $2.25 billion due to litigation
On January 25, a Pennsylvania court ruled against Bayer and ordered $2.25 billion in damages to victims exposed to the company's herbicide Roundup, including $250 million in damages and $2 billion in punitive damages.
Bayer said the "verdict conflicts with overwhelming scientific evidence." Bayer believes the product is safe and says it has good grounds to appeal to overturn the verdict and to eliminate or reduce the unconstitutionally exorbitant damages.
According to Bloomberg Intelligence, while the jury's award for damages is likely to be reduced, the verdict is likely to be more challenging than ever because the amount of damages is still too high. After that, the remaining 40,000 or so pending "Roundup" cases in the United States will also be more difficult to resolve and subject to higher payments. In addition, Bayer is facing lawsuits against other Monsanto products, particularly biphenyl contamination.
Since the ultimate scope of damage due to these legal issues remains uncertain, it is difficult to consider whether to spin off Bayer's Crop Science division. At the same time, if Bayer spins off its consumer health division and frees up much-needed cash, it could instead encourage plaintiffs' lawyers in the United States to be more emboldened in their legal efforts.
It is reported that Bayer, which has independent divisions such as pharmaceuticals, consumer health and agriculture, also inherited the "Roundup" lawsuit after its $63 billion acquisition of repellent manufacturer Monsanto. The decision, the largest in five years in a herbicide lawsuit, has led to a 5.7 percent drop in Frankfurt stock prices. Since acquiring Monsanto in 2018, Bayer's share price has fallen by nearly 70 percent.
The company has repeatedly failed to address the herbicide issue, including after committing to spend $16 billion to settle the lawsuit. The "Roundup" lawsuit has also become a major obstacle to change in the company.
02
Dabeinong: In 2023, the pre-loss will be 800 million yuan to 2.2 billion yuan, and the revenue of seed business will increase by nearly 50%
On January 30, Dabeinong released its 2023 performance forecast, with an expected loss of 1.8 billion yuan to 2.2 billion yuan, a profit of 55.6018 million yuan in the same period last year, and an estimated non-net profit loss of 1.65 billion yuan to 2.05 billion yuan, and a profit of 91.3364 million yuan in the same period last year.
Dabeinong said that during the reporting period, the company promoted the transformation of its business model, and the net profit of the feed business increased by more than 60% year-on-year; the seed business performed well, with a year-on-year increase of nearly 50% in sales volume and revenue; the number of live pigs sold by the holding and joint-stock companies was about 6 million, a year-on-year increase of about 40%, and the pig business suffered a large loss due to the low price of the pig market.
In addition, in accordance with the provisions of the Accounting Standards for Business Enterprises, based on the principle of prudence, combined with the biological assets and pending matters at the end of the period, Dabeinong estimates the impact of impairment losses of 700 million yuan to 1 billion yuan, and according to the performance commitments and other relevant provisions in the equity investment agreement, and combined with the operating conditions of the investee, the impact of the impact of the transaction financial liabilities involving contingent consideration is estimated to be about 100 million yuan. 03
Golden Nonghua: Golden Nonghua, a subsidiary of Dabeinong, plans to purchase 46.5% of the equity of Jiamusilong Japonica Seed Industry for 39.64 million yuan
On January 30, Dabeinong announced that its wholly-owned subsidiary, Beijing Golden Nonghua Seed Technology Co., Ltd. (hereinafter referred to as "Golden Nonghua"), intends to sign the "Equity Transfer Agreement" with 40 natural person shareholders including Jiamusi Longjing Seed Industry Co., Ltd. (hereinafter referred to as "Longjing Seed Industry") and Hou Yuguang.
The "Equity Transfer Agreement" stipulates that Golden Nonghua will purchase 46.49% of the equity of Longjing Seed Industry held by the equity transferor for 39.6427 million yuan. After the completion of this transaction, Golden Nonghua holds 66.59% of the equity of Longjing Seeds, which will be included in the company's consolidated statements.
The company said that Longjing Seed Industry is a japonica rice seed company with greater brand influence in Northeast China, and the "Longjing 31" it participates in the operation has a total of 146 million mu, which is the japonica rice variety with the largest promotion area in China. Longjing Seed Industry has strong R&D capabilities and strength in japonica rice breeding, and has initially formed systematic breeding capabilities, laying a good foundation for the sustainable development of the company. 04
Denghai Seeds: It is planned to set up a new subsidiary, Qapqar Denghai Seeds, and the company's business scope includes the production of genetically modified crop seeds
On February 1, Denghai Seed Industry announced that the company invested in the establishment of a wholly-owned subsidiary "Qapqar Denghai Seed Industry Co., Ltd." (tentative name) in Yili Qapqar Xibe Autonomous County, Xinjiang, with a registered capital of 70 million yuan. The foreign investment is funded by the company's assets worth 40 million yuan and monetary funds of 30 million yuan, accounting for 100% of the registered capital.
The reporter learned that the purpose of this matter is to make full use of the natural resources of the Ili River Valley, further consolidate the company's industrialization development foundation, promote the healthy development of seed production scale, and build a new development pattern of the company. The company's business scope is mainly crop seed production, genetically modified crop seed production, crop seed management, crop seed import and export. Denghai Seed Industry said that the capital contribution is invested in the company's own assets and monetary funds, accounting for 2.11% of the company's net assets (the company's 2022 annual report data disclosed by the company), and the subsidiary established by the capital contribution is a wholly-owned subsidiary of the company holding 100% of the shares, so the capital contribution has no significant impact on the company's financial status and operating results. It is reported that the new company has the characteristics of agricultural production, so it is greatly affected by uncertain factors such as climate, natural disasters, pests and diseases, and the market, and its performance may also be affected to varying degrees. 05
Qiule Seeds: The volume and price of products have risen, and the profit will be 79.16 million yuan in 2023
On January 30, Qiule Seed Industry released a performance express report showing that the operating income in 2023 will be 534 million yuan, a year-on-year increase of 22.14%, the net profit will be 79.1679 million yuan, a year-on-year increase of 28.27%, and the non-net profit will be 72.5206 million yuan, a year-on-year increase of 25.71%.
Qiule Seed Industry said that during the reporting period, the company's operating income, net profit attributable to shareholders of listed companies and net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses The main reasons for the growth are: the company deeply cultivates corn, wheat, peanuts and other crop seed breeding, multiplication and pushing, actively explores the market, continues to increase R&D investment, optimizes the variety structure, continuously improves market share, customer orders are abundant, and the sales volume and sales price of corn seeds and wheat seed products have increased year-on-year, which continues to drive the sales revenue of the company's products. Net profit increased year-on-year. 06
Shennong Technology: It is expected to have a net loss of 32 million yuan to 45 million yuan in 2023
On January 30, Shennong Technology disclosed the 2023 annual performance forecast, which is expected to have a net profit loss of 32 million yuan to 45 million yuan attributable to the parent company in 2023, compared with -64.6014 million yuan in the same period last year, and a non-net profit loss of 25 million yuan to 38 million yuan, compared with -32.7285 million yuan in the same period last year.
The announcement explained that the reason for the change in performance is that during the reporting period, the company's product operating income and gross profit have not changed significantly. At the same time, Hainan Baoting South Breeding Industry High-tech Industrial Base Co., Ltd., a subsidiary of Hainan Baoting South Breeding Industry High-tech Industrial Base Co., Ltd., was affected by major factors such as the demolition and confiscation of buildings by law enforcement agencies, and the company did not incur such losses in the current period. The impact of non-recurring gains and losses on the company's net profit during the reporting period was about 7 million yuan.
07
Suken Agricultural Development: Operating income in 2023 will be about 12.2 billion yuan, down 4.13% year-on-year A few days ago, Suken Agricultural Development announced a performance report, achieving revenue of 12.201 billion yuan in 2023, a year-on-year decrease of 4.13%, and a net profit of 818 million yuan, a slight decrease of 0.94% year-on-year. Suken Agricultural Development said that the change in performance was caused by the decline in the edible oil market, the decline in the sales price of the company's main oil products, and the narrowing of profit margins. It is reported that the main business of Suken Agricultural Development is the planting and sales of crops, the production and sales of seeds and rice, the production and sales of edible oil, and the sales of agricultural materials. Suken Agricultural Development's main financial data and indicators for 2023↓
08
Yinghu Machinery: IPO "terminated", for the domestic corn harvesting machinery professional manufacturers
The domestic corn harvester leader Yinghu Machinery Shanghai Main Board IPO failed. On January 31, the Shanghai Stock Exchange announced that due to the withdrawal of the application for issuance and listing of Hebei Yinghu Agricultural Machinery Co., Ltd. (hereinafter referred to as "Yinghu Machinery") and its sponsor, the Shanghai Stock Exchange terminated its issuance and listing review in accordance with relevant regulations. According to the prospectus, Yinghu Machinery is a leading domestic independent research and development, production, sales and service as one of the corn harvesting machinery manufacturers, the company's main products for the ear peeling type and stem and ear harvesting type self-propelled corn harvester, the number of harvest rows is mainly three and four rows, can realize the corn ear picking, peeling, ear collection box, stalk chopping and returning to the field or recycling and other functions. Among them: the self-propelled corn harvester is mainly used for the harvesting of corn ears, and the self-propelled corn harvester with both stems and ears can realize the harvesting of corn ears and the recovery of stalks at the same time. Yinghu Machinery is a leading enterprise in the field of corn harvesters in mainland China, with a high competitive position in the industry. With the support of a series of national policies to strengthen agriculture, benefit farmers and support agriculture, with the good reputation of the company's products and services. From 2020 to 2022, Yinghu Machinery achieved sales of 4,691 units, 8,500 units and 9,261 units of corn harvesters, respectively, according to the statistics of China Agricultural Machinery Industry Association, Yinghu Machinery's sales volume ranked third, second and first in the field of domestic self-propelled corn harvesters, ranking in the forefront of the industry. From 2020 to 2022, Yinghu Machinery's domestic market share will be 16.20%, 21.30% and 21.51% respectively, and the market share will continue to increase. Looking back on the listing process, Yinghu Machinery's IPO has undergone the transition of the approval system and the registration system. In January 2023, Yinghu Machinery submitted an application for an IPO on the main board of Shanghai to the Securities Regulatory Commission. With the implementation of the comprehensive registration system, the IPO of Yinghu Machinery was transferred from the China Securities Regulatory Commission to the Shanghai Stock Exchange and accepted. In this IPO, Yinghu Machinery originally planned to raise 1.287 billion yuan for corn harvester expansion project, corn harvester spare parts project, R&D center construction project, supplementary working capital, etc. With the development of agriculture in mainland China and the advancement of agricultural mechanization, many companies in the field of agricultural machinery have developed rapidly and have rushed to the capital market. According to statistics, after the withdrawal of the IPO of Yinghu Machinery, there are still a number of agricultural machinery companies in the queue for IPO, Weichai Power (000338) spin-off of Weichai Lovol, which is known for wheeled grain harvesters and tractors, and Bo Shiran, a giant in the field of cotton harvesters.
Source丨Nong Caijun comprehensively compiled from Shell Finance, Jiemian News, Beijing News, Securities Star, Flush Finance, etc
Editor丨Nong Caijun
Contact Nong Caijun丨18565265490
WeChat revision: Readers and friends often miss to push the star 🌟 "Agricultural Finance Network Seed Industry Treasure Book" to receive the latest and hottest tweets in a timely manner